SAN FRANCISCO, April 30, 2024 (GLOBE NEWSWIRE) -- Hagens Berman urges Malibu Boats, Inc. (NASDAQ: MBUU) investors who suffered substantial losses to take action by submitting your losses now.
Class Period: Nov. 4, 2022 – Apr. 11, 2024
Lead Plaintiff Deadline: June 28, 2024
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Malibu Boats, Inc. (MBUU) Securities Fraud Class Action:
The complaint alleges that Malibu made misleading statements and failed to disclose that: (1) Malibu engaged in an elaborate scheme to overproduce and channel nearly $100 million of its highest priced, highest margin, slow moving boat inventory into fifteen Tommy’s Boats dealerships; (2) by doing so, Malibu artificially inflated its sales performance, market share, and stock value; (3) Malibu withheld certain incentives and rebates from its dealers; (4) as a result of the foregoing, Malibu faced substantial risk of litigation by one of its top dealers (Tommy’s); and (5) Malibu’s CEO Jack Springer departed due to his role in the scheme.
Investors began to learn the truth on Feb. 20, 2024, when Malibu announced that it and Springer “mutually agreed that Mr. Springer will cease to serve as Chief Executive Officer” and “Mr. Springer will also resign as a member of the Company’s Board of Directors[.]” No explanation for Springer’s departure was given.
Reasons for Springer’s departure may have become clearer on Apr. 11, 2024, when Malibu announced that dealer Tommy’s filed a verified complaint against the company. Tommy’s accuses Malibu and Springer of engaging in an elaborate scheme to over manufacture and pump nearly $100 million of its highest priced, highest margin, slow moving boat inventory into Tommy’s dealerships and that these actions were inconsistent with the orders Tommy’s placed for modestly priced, lower margin, and faster moving Axis boats. Tommy’s also alleges that “[i]n 2023, with national sales forecasted to be about 50% of 2022 sales, Springer and Malibu contrived [the] scheme to artificially boost Malibu’s [s]ales and profitability by shifting the anticipated loss onto the backs of its dealers, including Tommy’s dealerships.” In addition, Tommy’s claims that Malibu refused to pay it millions of dollars in earned incentives.
These events sent the price of Malibu shares sharply lower. In addition, these events resulted in Raymond James analysts downgrading Malibu shares from Outperform to Market Perform.
“We are investigating whether Malibu Boats may have pumped Tommy’s with excess inventory to create the false impression of sales growth and increased market share,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you invested in Malibu Boats and have substantial losses, or have knowledge that may assist the firm’s investigation, submit your losses now »
If you’d like more information and answers to frequently asked questions about the Malibu Boats case and our investigation, read more »
Whistleblowers: Persons with non-public information regarding Malibu Boats should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email MBUU@hbsslaw.com.
About Hagens Berman
Hagens Berman is a global plaintiffs’ rights complex litigation law firm focusing on corporate accountability through class-action law. The firm is home to a robust securities litigation practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and fraud. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
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Contact:
Reed Kathrein, 844-916-0895
